Silver Market Update

Silver's action in recent times has quite closely paralleled that of
gold and so much of what has been written in the Gold Market update can be
taken to apply to silver, except, obviously, prices and support levels. Silver
staged a reversal day last Monday after becoming very overbought, similar to
that in gold, and then went on to react sharply, although by Wednesday - Thursday
it was already stabilizing above support at the April 04 highs in the $8.40
area, which it had earlier succeeded in breaking above by a significant margin.

The Reversal Day last Monday is believed to signal an end to the intermediate
uptrend that began in September, and if so, a lengthy period of consolidation/reaction
is to be expected, mirroring the situation in gold. Although a short-term rally
is to be expected next week following last week's plunge, it is considered
unlikely that it will get very far, after which renewed decline it to be expected.
It should be noted that if silver drops back into pattern, by breaking back
below the April 04 high at about $8.40, and perhaps heads for support in the
$8 area, it will not negate the overall bullish pattern.

The above represents the opinion and analysis of Mr. Maund,
based on data available to him, at the time of writing. Mr. Maunds opinions
are his own, and are not a recommendation or an offer to buy or sell securities.
No responsibility can be accepted for losses that may result as a consequence
of trading on the basis of this analysis.

Mr. Maund is an independent analyst who receives no compensation
of any kind from any groups, individuals or corporations mentioned in his reports.
As trading and investing in any financial markets may involve serious risk
of loss, Mr. Maund recommends that you consult with a qualified investment
advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction
and do your own due diligence and research when making any kind of a transaction
with financial ramifications.